Financing your new car

You've done all the research, spent hours online, and now you've found it – your dream machine. But how are you going to pay for it? Here’s the rundown.

Use your savings

In an ideal world, we’d save like crazy for big purchases. And after a house, a decent car is likely to be the biggest purchase you’ll ever make.

Diligently saving up for a car will take time. But if you have a great savings plan and enough discipline, it's possible.

With enough savings, you won’t need to apply for a loan or pay interest – saving you money in the long run. Just make sure you have a budget in place so outgoings like registration, insurance and running costs are covered.

Get there sooner with a personal loan

Sometimes we just don’t have enough in the bank to buy the car we want. If that’s you, a NAB Personal Loan might be what you need to get behind the wheel sooner. If you’re approved and accept the loan, you’ll get your funds in one business day.

We offer fixed and variable rate loans with a maximum loan term of seven years. Our loans are unsecured, which means you don’t need to use the car as security. Paying off your loan early is something to be proud of, so we won’t surprise you with any penalty or exit fees. However, life can sometimes take an unexpected turn so be reassured that we won’t penalise you for missed repayments either. 

We offer loans from $5,000 to $55,000—and repayments can be made weekly, fortnightly or monthly to align with your pay cycle. 

How to get a car loan

You can use a personal loan to buy a new or second-hand car from either a dealer or a private seller.   

First, work out how much you need to borrow. Think about what type of car you need and what you’ll use it for. Do some research to determine how much you’ll need for the car you want.

It’s a good idea to set up a budget so you know how much you can afford in repayments. 

You can use our car repayment calculator and personal loan borrowing power calculator to work out what you can afford to borrow and repay. 

Getting approved for a car loan

You can apply online for a NAB Personal Loan to buy a car. Before you apply, make sure you’re eligible and have all the information you need.

To be eligible you need to be 18 years or older, receive regular income and meet citizenship requirements. 

You’ll also need your NAB ID if you’re an existing NAB customer, driver’s licence number (if you have one), employment details and financial information such as your income, assets, debts and expenses.

Find out more about how to apply for a personal loan

Check your credit rating

Before you apply for a personal loan, you may want to get a credit report. The report outlines the last seven years of your credit history – including why you've applied for credit, what types of credit, and how much each time.

It also lists if you've been bankrupt, as well any overdue accounts you may have had. Be aware these reports sometimes have mistakes, so check yours closely.

Find out more about creditworthiness and how we assess your ability to service a personal loan. 

Find out how to get a personal loan for a car or check our car repayment calculator and borrowing power calculator before you buy. If you’re ready, apply online for a personal loan.

Family or lease options to consider

Getting a car loan and proving you can make repayments can help get you off to the right start with your credit history. But you should consider all your options before you make a final decision.

Ask yourself:

  • Do you have enough savings to buy a cheaper car outright?
  • Can you wait a little longer and save enough to reduce the car loan amount?
  • Can your family help you buy your car?
  • Is the car for work or business purposes?
  • If the car's for work or business purposes, you might be able to lease it rather than purchase it outright.

There are all kinds of leasing arrangements available; your tax specialist can explain the tax implications before you make that decision.

Terms and Conditions

The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.


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